Bitcoin “What’s New in Insurance” Series: Part 3

In the third part of a series on Bitcoins, Ty Sagalow, President of the Innovation Insurance Group discusses “What’s News in Insurance” and how the peer-to-peer payment system has become more legitimate, if not more secure.

Recently, the U.S. Marshals Office auctioned 30,000 Bitcoins that were forfeited by Silkroad, one of the original Bitcoin companies allegedly involved in illegal activities.  Mr. Sagalow says “the decision by the United States Government to sell Bitcoins is significant, not just because they are worth about $18 million, in todays market…it really legitimizes Bitcoins.”

According to Mr. Sagalow, the U.S. Internal Revenue Service also announced that Bitcoins are considered “property” and can be used in taxable transactions. You can mow use Bitcoins to purchase items through Amazon and rent a hotel room via Expedia.com.  In addition, Mr. Sagalow says venture capital funding going towards Bitcoin investments and is supposed to top $300 million in 2014.